Episode Highlights:
- 00:01 – Introduction
- 00:04 -Advice On What The Video Is About
- 01:01 -Analysis Of Chart Showing Bitcoin Major Corrections From September 2010 To December 2017
- 01:58 -Examples Of Bitcoin Corrections In The Past
- 06:22 -Closing Thoughts
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Transcription:
00:01 – Introduction
Hey, what’s up guys? It’s Dan again from cryptocamacho.com.
00:04 -Advice On What The Video Is About
Hey guys today I want to put you at ease. I want you to feel relaxed. I want you to look at what I’m about to show you and I want you to know that what is going on in the market today is completely common. It has happened many times in the last, let’s say seven to ten years where there has been incredible hikes in price and incredible dips in the price of Bitcoin and other cryptocurrencies. I want to show this to you very quickly because I just want to put you guys at ease about what’s going on in the current market. I talked about the crash in recent videos and we’ve obviously seen a high of $20,000 for Bitcoin. We’ve seen a low all the way down to about 6000 actually under 6000 on bitcoin in the last two months. Now we’re seeing signs of the market recovering and there are still people that are saying that the market still may go back down and dip again. But what I want to tell you is do not fear because what I’m going to show you right now will calm all of your fears right now so let’s jump right into it.
01:01 -Analysis Of Chart Showing Bitcoin Major Corrections From September 2010 To December 2017
This graphic I came across on Twitter it was provided by Charlie Bilello, I think his name is. It came originally from KOIN desk and Charlie tweeted about it. I happen to notice it on Twitter and it is showing Bitcoin major corrections from September 2010 to December 2017 and I think it’s a fascinating view of what has happened in the last seven years, let’s say. In the percentages around the declines we’ve seen in the last seven years and how it relates to today’s market where we have recently seen multiple downturns and we may even see another one again. I think it’s really good to look at a chart like this because it will show you that this kind of thing is very common this is not unique to 2017 sorry 2018, it’s not unique to this year where cryptocurrency is starting to gain mass adoption, it’s starting to kind of ramp up and gain more widespread adoption and so you can expect the highs to be higher and the lows to be lower.
01:58 -Examples Of Bitcoin Corrections In The Past
Now just for kicks let’s go through a few of these just as an example. We look all the way back to September and October of 2010 the correction lasted for 24 days, there was a high of 17 cents and a low of 1 cent. That is a 94% decline from 17 cents down to 1 cent and the return back to the high was 16 sorry 1600%. We went down 100% but then we went up 1600% the same thing happened in November of 2010 this time the correction only lasted for four days the high was 50 cents the low it was 14% with a decline of 72% and then returning to a high of 257% on January thirty-first and it took 86 days to do that. I just want to show you this because it really articulates the percentage declines we’ve seen and the percentage increase on the return back to the highs. If you look at even last year let’s just go to 2013. Over a period of 88 days, we saw a bitcoin at a high of $263 … $366 and a low of $63 and that’s a decline of 76% when we went back to the high of 266 we saw the 323% return. It took 211 days to do that so it didn’t actually take quite a bit longer to do that but if you look at recent years especially in 2017 there’s been multiple dips. You’ve seen 1 and 33%, 39%, 41% so the dips are getting smaller and the number of days it’s taking to recover from those dips back to the highs are actually getting shorter as well. If you look at the most recent dip and this only records out to December 21st unfortunately. On the 17th between the 17th and the 21st, we saw four days it went from 19,783 to 13000. Approximately a 34% decline and it returned all the way up from that $13078 at a 51% gain. You can look at the charts here. If you look at the charts from December 17th to the 21st. [Let’s just go over and do let’s see the 17th, whoops I’m all the way back here actually 17th.] OK, so the 17th right here OK so we see on the 17th right here we’re at about 20,000. Then we see a decline all the way to the bottom here which is about let’s say 40% approximately. I’m measuring this arbitrarily so he said the percentage was 34% I’m going to say the percentage was 44% and then from that base going back to a high we see from that base all the way to the most recent high a 54% increase. We did see a decline of about 45% ish and we saw an increase of 54%. Now we see it keep going down here but I expect out of the long haul, in the long haul if you go and look at the perspective here [whoops, let me get rid of that real quick] and you look at a long-term view of this we’re going to see rises much more spectacular than $20,000 right here. We’re seeing a big correction because of this enormous rise that we saw right here in 2017 all the way to 2018 we saw a really spectacular rise. It was huge. It was all the way and I’m doing this approximately but it was around 450% from September about a 450% increase in the market. Now we’ve seen a 450% increase and we’ve really only seen a 70% decline from that increase. That’s crazy. Goes up 450% decline 70% everybody thinks this is the end of the world. You can expect that there is going to be much more increases after this. There could be another dip; there could be another dip. It could go down as low as forty-five hundred-ish around somewhere right down here and it definitely could happen and once that happens though if it happens it may not actually happen if it does I can see a very spectacular rise coming out of this. All the way up and beyond the $20,000 mark. [Whoops. Scribbled on there a little bit.]
06:22 -Closing Thoughts
I wanted to share with you this I can put this in the show notes if you guys are interested in it but I thought it was a very intriguing chart gives me confidence in this bear market that we’re in right now. Gives me confidence that this is not the end cryptocurrency is not going away. This is only the beginning. This is just a correction that happens multiple times every year and it’s to be expected you should expect it, you should have funds set aside so that when there is a correction you could jump into the market buy on the debt and sell when it goes back up on the bounce.
I’m Dan from cryptocamacho.com Hopefully you enjoyed this video love your comments so please post them after subscribing by clicking on that little red button right there on YouTube. See you guys.
